Talk about strategy! Business intelligence firm MicroStrategy is preparing to buy up to $488 million in Bitcoin with the proceeds of a $500 million bond sale that the company just completed.
The firm announced its intention of selling these bonds to invest in BTC earlier this month.
And the business intelligence software company headed by CEO Michael Saylor has confirmed in a press release that the deed is done. It will now use this money to add to its vast trove of Bitcoin, which if all goes well should soon cross 100,000.
MicroStrategy said that its stash of approximately 92,079 BTC as being held by a newly formed subsidiary, MacroStrategy LLC.
The company offered these secure notes, due 2028, to qualified institutional investors at an annual interest rate of 6.125%. The aggregate principal amount of the notes sold in the offering was $500 million. And the proceeds of the junk bond sale have yet to be spent on Bitcoin.
In the short term, though, the market could well see some positive uptick in terms of price as this enormous wealth flows into the already volatile market that is finally back in green now on the back of a number of positive developments.
Saylor has made Bitcoin acquisition a second mandate for his 32-year-old company, after its primary business of developing software, as it continues to acquire BTC at regular intervals.
In fact, the company is now paying directors in Bitcoin.
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